Operating income scaled from a $14.5 million loss in 2025Q1 to a $155.8 million profit by 2026Q4, supported by gross margins reaching 68.2%.
| Sales/Revenue | 1.34B | 436.77M | 192.97M | 184.19M | 106.48M | 58.7M | 53.84M |
| Revenue Growth % | 205.68% | 126.34% | 4.76% | 72.99% | 81.4% | 9.03% | - |
| Cost of Goods Sold | 426.77M | 153.87M | 73.54M | 78M | 42.46M | 20.42M | 7.73M |
| COGS % of Revenue | 31.96% | 35.23% | 38.11% | 42.35% | 39.88% | 34.79% | 14.36% |
| Gross Profit | 908.35M | 282.91M | 119.43M | 106.19M | 64.02M | 38.28M | 46.11M |
| Gross Margin % | 68.04% | 64.77% | 61.89% | 57.65% | 60.12% | 65.21% | 85.64% |
| Gross Profit Growth % | 221.07% | 136.88% | 12.46% | 65.89% | 67.24% | -16.98% | - |
| Operating Expenses | 463.34M | 244.91M | 156.49M | 127.43M | 85.98M | 63.51M | 44.03M |
| OpEx % of Revenue | 34.7% | 56.07% | 81.09% | 69.18% | 80.75% | 108.2% | 81.8% |
| Selling, General & Admin | 183.96M | 98.92M | 60.19M | 48.25M | 34.9M | 28.67M | 16.47M |
| SG&A % of Revenue | 13.78% | 22.65% | 31.19% | 26.19% | 32.78% | 48.84% | 30.6% |
| Research & Development | 279.38M | 145.99M | 95.53M | 76.77M | 47.95M | 34.84M | 27.56M |
| R&D % of Revenue | 20.93% | 33.43% | 49.51% | 41.68% | 45.03% | 59.36% | 51.2% |
| Other Operating Expenses | 0 | 0 | 765K | 2.41M | 3.13M | 0 | 0 |
| Operating Income | 445M | 38M | -37.06M | -21.23M | -21.97M | -25.23M | 2.07M |
| Operating Margin % | 33.33% | 8.7% | -19.2% | -11.53% | -20.63% | -42.99% | 3.85% |
| Operating Income Growth % | 1071.16% | 202.53% | -74.51% | 3.34% | 12.94% | -1318.45% | - |
| EBITDA | 480.04M | 59.94M | -23.29M | -11.72M | -17.18M | -23.02M | 3.88M |
| EBITDA Margin % | 35.96% | 13.72% | -12.07% | -6.36% | -16.13% | -39.21% | 7.21% |
| EBITDA Growth % | 700.94% | 357.38% | -98.68% | 31.76% | 25.38% | -692.58% | - |
| D&A (Non-Cash Add-back) | 35.04M | 21.94M | 13.77M | 9.51M | 4.79M | 2.22M | 1.81M |
| EBIT | 475.44M | 54.87M | -36.29M | -18.83M | -18.83M | -25.23M | 2.07M |
| Net Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 30.43M | 16.87M | 14.31M | 3.32M | -245K | -62K | 24K |
| Pretax Income | 475.44M | 54.87M | -22.75M | -17.91M | -22.21M | -25.3M | 2.1M |
| Pretax Margin % | 35.61% | 12.56% | -11.79% | -9.73% | -20.86% | -43.1% | 3.89% |
| Income Tax | 3.16M | 2.69M | 5.62M | -1.37M | -37K | 2.21M | 766K |
| Effective Tax Rate % | 0.66% | 4.9% | -24.73% | 7.63% | 0.17% | -8.76% | 36.56% |
| Net Income | 472.28M | 52.18M | -28.37M | -16.55M | -22.18M | -27.51M | 1.33M |
| Net Margin % | 35.37% | 11.95% | -14.7% | -8.98% | -20.83% | -46.87% | 2.47% |
| Net Income Growth % | 805.04% | 283.94% | -71.45% | 25.38% | 19.39% | -2170.05% | - |
| Net Income (Continuing) | 472.28M | 52.18M | -28.37M | -16.55M | -22.18M | -27.51M | 1.33M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.51 | 0.29 | -0.18 | -0.11 | -0.15 | -0.20 | 0.02 |
| EPS Growth % | 765.52% | 261.11% | -63.64% | 26.67% | 25% | -1192.9% | - |
| EPS (Basic) | 2.65 | 0.31 | -0.18 | -0.11 | -0.16 | -0.20 | 0.02 |
| Diluted Shares Outstanding | 188.23M | 181.16M | 155.09M | 146.56M | 145.01M | 139.95M | 72.68M |
| Basic Shares Outstanding | 178.54M | 167.5M | 155.09M | 146.56M | 142.51M | 139.95M | 72.68M |
| Dividend Payout Ratio | - | - | - | - | - | - | - |
Hyperscale customer concentration
According to the latest quarterly filings, Credo achieved a remarkable 157% year-over-year revenue growth in 2026Q4, signaling that the company's AEC product line is successfully capturing significant share within the rapidly expanding AI-driven data center infrastructure market as hyperscalers accelerate their transition to higher-speed connectivity architectures.
The trajectory suggests that Credo has moved beyond initial product validation into a phase of massive commercial deployment. Investors should monitor whether this growth remains sustainable or if it reflects a temporary surge tied to specific, non-recurring hyperscale build-out cycles.
As reported in financial statements, Credo has successfully expanded its gross margins to 68.2% by 2026Q4, a performance that appears to validate the company's proprietary DSP-centric approach to connectivity silicon compared to the lower-margin hardware offerings of traditional optical component peers in the broader industry.
This margin profile suggests significant pricing power and a successful shift toward higher-value integrated circuits. The ability to maintain these levels while scaling volume implies that the company's N-1 process node strategy is effectively insulating it from the cost pressures typically seen in leading-edge semiconductor manufacturing.
Based on the provided income statement data, operating income scaled from a loss of $14.5 million in 2025Q1 to a profit of $155.8 million by 2026Q4, demonstrating that the company has achieved significant operating leverage as revenue growth vastly outpaces the expansion of fixed operating expenses.
The rapid improvement in operating margins from negative territory to over 35% indicates that the company's fabless model is highly efficient at scale. This trend suggests that incremental revenue is flowing directly to the bottom line, though investors should watch for potential future increases in R&D intensity.
Analysis of the company's recent filings reveals that stock-based compensation reached $49.7 million in 2026Q4, representing a substantial non-cash expense that warrants careful scrutiny when evaluating the true economic profitability and the dilution impact on shareholders relative to the reported net income of $169.1 million.
While the net income figures appear robust, the high level of SBC suggests that a meaningful portion of the company's earnings is being utilized for talent retention. Investors should assess whether this compensation structure remains aligned with long-term shareholder value creation as the company matures.
Despite the impressive financial performance, the company's extreme revenue concentration with a limited number of US-based hyperscalers, as inferred from the rapid growth trajectory, poses a significant risk that any pause in capital expenditure cycles could lead to abrupt and material volatility in future quarterly results.
The reliance on a narrow customer base may create 'air pockets' in demand that are not immediately apparent in the current growth figures. Market participants should remain cautious regarding the potential for inventory digestion phases that often follow periods of aggressive infrastructure deployment in the connectivity space.
Quick answers to the most common questions about buying CRDO stock.
For fiscal year 2026, Credo Technology Group Holding Ltd (CRDO) reported total revenue of $1.34B. This represents a 2380.0% increase compared to $53.8M in 2020.
Credo Technology Group Holding Ltd (CRDO) is profitable, generating $472.3M in net income for the fiscal year ending 2026 with a net profit margin of 35.4%.
Credo Technology Group Holding Ltd (CRDO) reported an operating income of $445.0M, resulting in an operating profit margin of 33.3%. This margin reflects the operational efficiency of the business before interest and taxes.
Credo Technology Group Holding Ltd (CRDO) generated $908.3M in gross profit for the year, representing a gross profit margin of 68.0%. This demonstrates the company's core pricing power and production efficiency.